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Mortgage rates fall further
Average 30-year fixed-rate loan down to 5.57%, a level that should keep the housing market growing.
June 23, 2005: 1:12 PM EDT

NEW YORK (CNN/Money) - Mortgage rates fell across the board over the past week, mortgage finance firm Freddie Mac said Thursday, suggesting the housing market still has room to grow.

The rate on 30-year, fixed-rate loans averaged 5.57 percent for the week ending Thursday, with an average 0.6 point payable upfront, down from the prior week's average of 5.63 percent, according to the mortgage finance firm's survey.

A year ago, the 30-year fixed-rate loan averaged 6.25 percent.

Freddie Mac said the average for the 15-year mortgage fell to 5.16 percent this week from 5.22 percent the previous week, with an average 0.6 point payable upfront.

The 15-year loan averaged 5.64 percent this time last year.

"Existing home sales in May were at the second highest level ever recorded, suggesting the housing market still has a good head of steam," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a matter of fact, mortgage rates, which are fueling the vibrant housing market, are even lower in June than they were in May.

"Given that mortgage rates aren't expected to move to much in either direction any time soon, we fully expect the housing market will continue to thrive well into the foreseeable future."

Five-year, adjustable-rate mortgages fell to an average 5.05 percent this week, with an average 0.6 point payable up front, down from last week's average of 5.10 percent.

There is no data available for year-over-year comparisons since Freddie Mac only began tracking these rates this year.

One-year, adjustable-rate mortgages also dipped to an average 4.23 percent this week, with an average 0.7 point payable up front, down from 4.25 percent.

At this time last year, the one-year adjustable-rate loan averaged 4.13 percent.

Mortgage bankers say the housing boom has legs. Click here for more.

But home sales dipped May. Click here for more.

Read why a Federal Reserve governor sees huge mortgage risks.  Top of page


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